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Vineyards and Grapes of the North: a Status Report

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Vineyards and Grapes of the North: a Status Report EXTENSION CENTER FOR COMMUNITY VITALITY Vineyards and Grapes of the North A STATUS REPORT Authored by: Brigid Tuck, Extension Center for Community Vitality, and William Gartner, Department of Applied Economics IN PARTNERSHIP WITH: NORTHERN GRAPES PROJECT USDA, SPECIALTY CROPS RESEARCH INITIATIVE PROGRAM NATIONAL INSTITUTE OF FOOD AND AGRICULTURE Vineyards and Grapes of the North A STATUS REPORT March 2013 Authored by: Brigid Tuck and William Gartner Partners/Sponsors: Northern Grapes Project, which is funded by USDA’s Specialty Crops Research Initiative Program of the National Institute of Food and Agriculture, project number 2011-51181-30850 Special Thanks To: Linda Jones, Executive Director, Michigan Grape and Wine Industry Council Jim Luby, Professor, University of Minnesota Extension Tim Martinson, Senior Extension Associate, Cornell University Chrislyn Particka, Extension Support Specialist, Cornell University Participating Industry Associations Northern Grapes Project Advisory Committee Photo Credit: David L. Hansen, University of Minnesota © 2013 Regents of the University of Minnesota. All rights reserved. University of Minnesota Extension is an equal opportunity educator and employer. In accordance with the Americans with Disabilities Act, this material is available in alternative formats upon request. Direct requests to the Extension Store at 800‐876‐8636. Printed on recycled and recyclable paper with at least 10 percent postconsumer waste material. VINEYARDS: BASELINE SURVEY RESULTS i Table of Contents 1. NORTHERN GRAPES PROJECT 1 2. VINEYARDS AND GRAPES OF THE NORTH: SUMMARY 2 3. GRAPE GROWING: BASELINE STUDY RESULTS 3 Survey Methodology and Response Rates 3 Vineyard Characteristics 5 Vineyard Operations 10 Marketing and Grape Utilization 13 Future Plans 15 Cold‐Hardy Grape Varieties 17 Other Grape Varieties 22 4. CONCLUSIONS AND IMPLICATIONS 23 5. APPENDIX ONE: PARTICIPATING INDUSTRY ASSOCIATIONS 24 6. APPENDIX TWO: COLD‐HARDY GRAPE DEFINITION 25 VINEYARDS: BASELINE SURVEY RESULTS ii NORTHERN GRAPES PROJECT Successful viticulture research programs focused on the development of cold-hardy grapes promoted the emergence of a new industry in states where grape growing and local wine making had previously been limited. Grape growers and wineries in these states, spanning from Nebraska in the west to New York in east, have rapidly adapted the new grape cultivars. As the number of vineyards has exploded, so has the number of wineries producing wines from these locally-grown grapes. The new industry faces challenges to production, marketing, and sales. These challenges are being addressed by the Northern Grapes Project. The Northern Grapes Project is funded by USDA’s Specialty Crops Research Initiative Program of the National Institute of Food and Agriculture, project number 2011-51181-30850. The Northern Grapes Project brings together researchers, Extension specialists, and industry professionals from 13 states to address viticulture, enological, business management, and marketing issues related to growing cold hardy grapes and producing wines made from these grapes. According to the grant application, after five years, the project teams intend to have accomplished the following goals: 1) production and sales of wines made from cold climate cultivars will have doubled, 2) improved quality resulting from better growing and winemaking practices will have improved customer retention and driven repeat sales, 3) enhanced breeding and cultivar evaluation will have resulted in an accelerated pace of cultivar release, 4) cold climate cultivars will establish unique regional marketing identities in their area, 5) wineries will have understood and applied business and tasting room management practices that drive sales and profitability, and 6) wineries and vineyards will have successfully transitioned from “startup” to “sustainably profitable.” To measure progress on these goals, one of the first tasks of the project team was to conduct a baseline survey. This survey, sent to grape growers and wineries in the participating states, gathered data on the current status of the grape and wine industry in general and on cold-hardy grape and wine production, specifically. Questions were asked pertaining to sales and production (wineries and vineyards), growing practices (vineyards), and operating practices (wineries). This report deals with vineyards. A report on wineries can be found at: http://www.extension.umn.edu/projects/community/EconomicImpact. VINEYARDS: BASELINE SURVEY RESULTS 1 VINEYARDS AND GRAPES OF THE NORTH: A SUMMARY The Northern Grapes Project brings together researchers, Extension specialists, and industry professionals from 13 states to address viticulture, enological, business management, and marketing issues related to growing cold hardy grapes and producing wines from these grapes. In spring 2012, grape growers and winery owners in 13 states were surveyed. Questions asked pertained to sales and production (wineries and vineyards), growing practices (vineyards), and operating practices (wineries). The goal was to establish an industry baseline. In total, 345 vineyards provided full answers to the surveys. The grape growing industry in the Northern Grapes states has experienced rapid growth. Only one in five vineyards existed prior to 2002. One in three started since 2007. Vineyards need four years to reach full maturity. Vines planted after 2007 may not have reached full production capacity. There is also some evidence that new vineyard establishment is beginning to taper off although existing vineyards are intending to increase total acreage devoted to growing wine grapes. According to our analysis, there are 20,900 acres planted in grape vines in the participating states. Survey results show that 28 percent, or 5,900, are of the cold-hardy varietals identified in this study. Survey results, extrapolated to all growers, reveal grape growers in the participating states produced 72,000 tons of fruit in 2011. In total, vineyards in participating states spent $45.1 million in 2011. Of this, $26.0 million was on operating expenses and $19.4 million on capital expenditures. Forty-percent of vineyards did not use paid labor in 2011. As vineyards mature, this may not be sustainable. The most common marketing arrangement for vineyards was to sell via contract with a winery. Most vineyards sold their fruit as whole berries. Approximately half of the vineyards plan to maintain their current size for the next 2 years, half plan to expand, and a small minority (2 percent) plan to decrease or eliminate their vineyard. Vineyards indicate that disease and pest/insects are the greatest challenges to the growth and development of their vineyards. The number of vines planted by responding vineyards has doubled in the last four years. The Marquette grape is wildly popular (39% of all red cultivars) and has shown substantial growth in the number of recent plantings. VINEYARDS: BASELINE SURVEY RESULTS 2 GRAPE GROWING: BASELINE SURVEY RESULTS An early task of the Northern Grapes Project was to establish a baseline for the grape growing and winery industry in the participating states. This baseline will be used to measure changes in the industry over the period of the project. This report will detail the results of the baseline survey for grape growers in the participating Northern Grape Project states. Survey Methodology and Response Rates In early 2012, project researchers at the University of Minnesota sent a survey to grape growers and wineries in the participating states. Grower and winery lists were provided to the University of Minnesota by industry associations in each state (see appendix 1 for a list of participating associations). An email was sent to all members of these lists, resulting in 2,746 invitations to participate in the survey. Of these, 501 responded, for an overall response rate of 18 percent. In addition, links to the survey were available allowing individual growers and wineries not directly associated with an industry group, and thus not receiving a direct email invitation, to participate in the survey. These links were also announced during the Northern Grapes Project webinars. The survey links generated 110 responses. Therefore, in total, there were 611 total responses to the survey. Table 1-1 lists the participating states, the number of wineries and growers invited based on the industry association lists, the number of respondents using the open links, and the response rate. Minnesota has the highest membership totals.1 South Dakota had the highest response rate. Table 1-1: Northern Grapes Project Baseline Study Participating States, Response Rates State Total Number of Contacts from Number of Response Rates Industry Associations Responses Connecticut 32 5 16% Illinois 272 52 19% Iowa 222 66 30% Massachusetts 28 10 36% Michigan 164 36 22% Minnesota 1,012 167 17% North Dakota 54 14 26% Nebraska 172 46 27% New Hampshire 51 14 27% New York 202 32 16% South Dakota 14 11 79% 1 The Minnesota Grape Growers Association has a national reputation for its industry knowledge; therefore, many members of the association grow in neighboring states. Responses were categorized by state the grower or winery owner indicated as the state in which their operation is located. VINEYARDS: BASELINE SURVEY RESULTS 3 Vermont 47 18 38% Wisconsin 476 97 20% Not all of the survey responses were applicable to the baseline survey. Association memberships are generally open to all interested parties and therefore membership
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    Ames, Gregory P. 1981, November. Recreational Reuse of Abandoned Railroad RiPhts-of-Way: A Bibliooraphy and Technical Resource Guide for Planners. CPL Bibliography, No. 66. Council of Planning Librarians. Chicago, Illinois. Bentryn, Gerard C., and Edward Hay, 1976, March. "How to Get Trails on the Ground." Parks & Recreation. 11(3):28-29,55. Blomer, Craig. 1988, April 11. Personal Interview, Root River Trail Manager. Minnesota Department of Natural Resources. Rochester, Minnesota. Brackin, Dennis. 1982, May 6. "Completed Section Converts Trail Foes." Minneapolis Star and Tribune. (Minneapolis, Minnesota). PP. 22. Burwell, David. 1986, Winter, "Viewpoint: Rails-to-Trails ." Wilder- -ness. 50(175):60. Citizens Advisory Committee On Environmental Quality (CACEQ) . 1975. From Rails to Trails. U.S. Government Printing Office.--' Washington, D.C. Citizens League, The Committee on Facility Siting. 1980, October 22. Siting Of Major Controversial Facilities. Citizens League. Minneapolis, Minnesota. Clay, Grady, ed, 1980, September. "1980 ASLA Awards ." Landscape Architecture. 70(5):510-511,518-519. Cleckner, Robert M. 1973, February. "New Switch for Old Railroads." Parks & Recreation. 8(2):20-22,56-58. Collins, Dan. 1988, April 12-15. Personal Interviews, Trail Programs Supervisor. Minnesota Department of Natural Resources, Trails and Waterways Unit. St. Paul, Minnesota. Cordell, H. Ken, and Lawrence A. Hartmann. 1983. "Assessing Outdoor Recreation in the United States." Trends. 20(3) :42-46. Cranz, Galen. 1982. The Politics of Park Design. Massachusetts Institute of Technology. Cambridge, Massachusetts. Dillman, Don A. 1978. Mail and Telephone Surveys: The Total Design Method. John Wiley & Sons. New York, New York. Drake, Charles R. and Virginia L. 1969. River Valley Echoes.
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